Revolution Beauty anticipates profits will come in slightly above market guidance as it makes progress under its revival plan.
The beauty group said it expects to report an adjusted EBITDA of “at least” £12.5m for the year to 29 February, beating previous forecasts of between £11m and £12m.
Revolution Beauty presented shareholders with a new strategy last month as it sought to get the business back on stable ground after a year of legal battles, shareholder revolts and an accounting scandal.
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The company said it was “progressing well” under the new direction as it focused on its “masterbrand”, core categories, and select geographies to deliver future growth. It also plans to cut costs by £10m over the next three years.
It warned that its exit of lower margin products and brands was causing a short-term impact on sales “as expected” but that the longer-term benefit to profitability “is already materialising”.
Revolution Beauty group chief executive Lauren Brindley said: “It is early days, but we are already seeing positive impacts from the new strategy, including an encouraging response from our major customers and good progress on our cost savings programme.
“Our focus on driving sales from our more profitable brands is starting to deliver, with double-digit growth in sales of our core ‘Revolution’ masterbrand versus the second half of FY 2023.”
“Our major product launches for 2024 are ahead of plan as we focus on fewer and more impactful new products.
“We also opened our TikTok shop this week and are preparing to go live with a new direct Amazon US partnership in May 2024. I remain highly confident about our growth prospects and our ability to become a top five mass beauty player.”
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